Scrapping Stamp Duty May Drive Up Property Prices

We need more houses.

2017-03-06T00:23:22Z

Treasurer Scott Morrison says the Victorian government has had a "good crack" at trying to ease housing affordability pressures but he still believes supply is the key issue.

The state's housing package announced at the weekend includes scrapping stamp duty for home purchases under $600,000, taxing vacant housing stock and a shared ownership plan with the government so buyers do not need as big a deposit.

"But at the end of the day, if that just means people just bid up more at the auction because they can borrow more because they don't have to pay stamp duty then obviously that will take prices in one direction without addressing the supply issues," Mr Morrison told Ray Hadley on 2GB radio on Monday.